The U.S. Payment System: Efficiency, Risk and the Role of the Federal Reserve, 1990 Proceedings of a Symposium on the U.S. Payment System sponsored by the Federal Reserve Bank of Richmond

The U.S. payment system is in the midst of a significant transition. Some of the changes to our payment system, involving its efficiency, the risks inherent in the payment process, and the role of the private and public sectors in the payment mechanism, are the subject of considerable debate and controversy. In recent years, the Federal Reserve Bank of Richmond has played an active part in the development and implementation of policies to improve the payment process. The Bank's operations staff has represented the Federal Reserve System in work with the banking industry to help shape and implement programs to increase efficiency and reduce payment risk. Further, our Research Department has made payment system research an important part of its agenda. The mix of practical experience and research has resulted in a unique perspective on payment system issues that led us to organize a symposium on the U.S. payment system, held on May 25-26, 1988, in Williamsburg, Virginia. Reflecting our belief in the importance of combining both practical experience and theory in addressing payment issues, we invited practi­ tioners, scholars, and policymakers to share their ideas. The symposium provided an opportunity for those researchers who are studying p- xi PREFACE xii ment issues to present their ideas and to have these ideas evaluated by experienced practitioners.

Conference Overview Progress in Bringing About a More Efficient and Safer Payment System.- I Payment Market Efficiency.- 1 The Electronic Payment Industry: Change Barriers and Success Requirements from a Market Segments Perspective.- Commentary by Michael Urkowitz.- 2 Market Failure and Resource Use: Economic Incentives to Use Different Payment Instruments.- Commentary by Donald R. Hollis.- 3 The Canadian Payment System: An Evolving Structure.- Commentary by James F. Dingle.- Luncheon Address Perspectives on Payment System Risk Reduction.- II Payment System Risk.- 4 Legal and Regulatory Reform in Electronic Payments: An Evaluation of Payment Finality Rules.- Commentary by Hal S. Scott.- 5 Payment Risk, Network Risk, and the Role of the Fed.- Commentary by Robert E. Litan.- III Private and Public Roles in the Payment Mechanism.- 6 The Conflicting Roles of the Federal Reserve as Regulator and Services Provider in the U.S. Payment System.- Commentary by Robert J. Listfield.- Commentary by Gerald R. Faulhaber.- 7 Money, Credit, Banking, and Payment System Policy.- Commentary by Clifford W. Smith, Jr..- Conference Summary An Overview of Payment System Issues: Where Do We Go from Here?.- List of Conference Attendees and Their Affiliations.